Washington, D.C. — Last night, the Senate Committee on Banking, Housing, and Urban Affairs released a 442-page discussion draft of legislation to overhaul the nation’s housing finance system. The draft bill would wind down Fannie Mae and Freddie Mac and replace them with a system under which the government would provide an explicit and priced backstop to private mortgage-backed securities that meet certain standards.
Julia Gordon, Director of Housing Finance and Policy at the Center for American Progress, released the following statement:
We commend Sens. Tim Johnson (D-SD) and Mike Crapo (R-ID) and committee staff for developing a comprehensive and thoughtful draft bill based on many hours of expert testimony and detailed input from an extensive array of stakeholders. The bill reflects a growing consensus around the government’s critical role in ensuring access to safe and sustainable homeownership for America’s families. Importantly, it charges the new system with facilitating the broad availability of mortgage credit to all markets and all eligible borrowers throughout all business cycles. As we analyze the draft, we’ll be looking to see whether the proposed structure can effectively accomplish that core mission.
CAP released its own proposal for housing finance reform in January 2011 and has remained extensively engaged in policy development in this area. Relevant publications include:
- Making the Mortgage Market Work for America’s Families
- A Guide to Housing Finance Reform
- Expanding Access Through Responsible Innovation: The Market Access Fund
- Essential Elements of Housing Finance Reform
- Transitioning to a New System for Multifamily Finance
- A Responsible Market for Housing Finance
To speak with a CAP housing policy expert, contact Katie Peters at firstname.lastname@example.org or 202.741.6285.